• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

How The Drop In Oil Prices Is Affecting Nigerian Banks

Editor by Editor
February 9, 2016
in Business News, Politics
[HOSTAGE] Nigerian Banks Have Idle $5billion They Can’t Sell
Share on FacebookShare on TwitterShare on Linkedin

Oil prices have continued to decline steadily since last year and every sector of the Nigerian economy has been affected including Nigerian banks. With oil prices now hovering around $33 per barrel, this is a sharp drop from the financing arrangements that were structured based on $70 to $100 per barrel oil, according to reports in THISDAY.

Some of the banks who have funded deals in the oil and gas industry are now in a dilemma on how to restructure the loans without extending the repayment period beyond the duration of the licenses granted by the federal government on the assets.

The Group Managing Director and Chief Executive Officer of Diamond Bank Plc, Mr. Uzoma Dozie had told THISDAY that the drop in the price of crude oil would not discourage the banks from financing exploration and production (E & P) activities, provided that enough reserves and other fundamentals are in place throughout the life of the loan.

RelatedStories

Zabazaba oil field

Bullish momentum in Nigeria’s oil and gas Sector: Can the rally be sustained? 

October 5, 2024
Nigerian Stock Market sees red from start to finish, suffers N156 billion loss at last trading day of the week

Industrial goods sector suffers 13% drop in August, While Oil and Gas boosts market 

September 2, 2024

According to him, if the assets have enough reserves to repay the loan at very low oil price, the banks will have to restructure the loans to longer terms.

“For us, what it means is that if we are supposed to be paid in five years, we are going to be paid in eight years. But the most important thing is that there is enough reserves to enable them pay the banks because for those companies, the assumption is that they will grow the production and they will have enough reserves to give the banks the confidence that they can increase their cash flow and continue to invest and re-invest even at low oil price,” he had said.

The Vice President in charge of Corporate Banking at FCMB, Mrs. Ronke Jibodu acknowledged that the drop in oil prices was the biggest problem facing the banks.

According to her, the oil and gas industry is a sector where the banks would like to play, adding that FCMB’s portfolio in the sector is about $500 million.

“And a large part of this portfolio is not performing because of the drop in oil price. We have to restructure some facilities but for how long are we going to restructure? What if the leases will expire in 2019? If the leases expire, what happens to our cashflow?” she said.

This article was culled from THISDAY

Tags: Diamond BankFinancial ServicesOIl and Gas News
Editor

Editor

Related Posts

Zabazaba oil field
Blurb

Bullish momentum in Nigeria’s oil and gas Sector: Can the rally be sustained? 

October 5, 2024
Nigerian Stock Market sees red from start to finish, suffers N156 billion loss at last trading day of the week
Equities

Industrial goods sector suffers 13% drop in August, While Oil and Gas boosts market 

September 2, 2024
President Bola Ahmed Tinubu
Energy

President Tinubu to commission 3 main gas infrastructure projects by NNPC, others

May 3, 2024
NUPRC, Shell
Energy

FG offers to expedite approval of Shell, others exit from Nigeria if they pay for oil spill cleanup

May 3, 2024
opay
Corporate Updates

Opay Redefines Customer Service With Innovative Solutions And Expanded Accessibility

February 26, 2024
Why young Nigerians must consider investing in local and foreign stock markets
Exclusives

Nigerian Stocks you can invest in, if you have N2 million in January 2024 

January 8, 2024
Next Post

[BOOM]15 Million Shares Of FCMB Is On Full Bid

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • BREAKING: FG declares Tuesday as public holiday to honour the late former President Buhari
  • Nigeria’s broadband penetration crawls to 48.81% in May, few months to 70% target
  • NucleusIS rebrands as RIGO, unveils ambitious plan to digitize Africa’s healthcare economy 

Follow us on social media:

Recent News

Breaking

BREAKING: FG declares Tuesday as public holiday to honour the late former President Buhari

July 14, 2025
Broadband infrastructure

Nigeria’s broadband penetration crawls to 48.81% in May, few months to 70% target

July 14, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics